# 1 Takers,Inc.provide the following results:
2004 2003
Units 2,400 3,000
Total Cost 19,200 24,000
What form of cost behavior is the cost above?
Fixed cost, Sunk Cost, Mixed Cost or Variable Cost
fixed cost
To determine the form of cost behavior for the cost provided, we need to analyze the relationship between the cost and the number of units produced.
Here, we are given the number of units produced in two consecutive years: 2004 and 2003. Along with that, we are given the total cost incurred in each year.
Let's calculate the cost per unit in each year:
For 2004:
Cost per unit = Total Cost / Units
Cost per unit = 19,200 / 2,400
Cost per unit = 8
For 2003:
Cost per unit = Total Cost / Units
Cost per unit = 24,000 / 3,000
Cost per unit = 8
From the calculations, we can see that the cost per unit remains the same in both years. This indicates that the total cost is directly proportional to the number of units produced.
Therefore, the form of cost behavior for the given cost is a Variable Cost.